Value stocks, underpinned by strong earnings, have posted a 3,500% gain since 2000, outpacing growth in a reminder of the power of fundamental-driven investing.
The article explicitly discusses the 3,500% run in value stocks since 2000, driven by earnings strength. IWD, as the iShares Russell 1000 Value ETF, tracks large-cap U.S. value stocks and is a direct beneficiary of this trend. The long-term performance underscores the ETF's historical appeal.
IWD has historically tracked the performance of large-cap value stocks, meaning its long-term holders have seen substantial gains. The article underscores that value's long-term earnings-driven returns justify a strategic allocation.
The article focuses on historical returns but implies that earnings strength can persist. Investors might consider valuations and future earnings projections to gauge further upside.
Value stocks have returned 3,500% since 2000, driven by consistent earnings growth and cheap valuations. The performance underscores the long-term payoff of factor-based investing. Investors are assessing whether the rally can extend amid shifting rate expectations.
The article credits consistent earnings strength and attractive valuations for the outperformance.
While past performance is no guarantee, the underlying earnings growth could continue to support returns if valuations remain reasonable.
Value stocks have outpaced growth stocks over this period, according to the article, though growth has had periods of outperformance.